Cable One Inc (CABO)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	27.96	—	—	9.29	—
Days of sales outstanding (DSO)	days	23.02	18.00	20.43	22.32	13.97
Number of days of payables	days	23.56	20.60	—	—	—
Cash conversion cycle	days	27.42	-2.60	20.43	31.61	13.97

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 27.96 + 23.02 – 23.56
= 27.42

The cash conversion cycle of Cable One Inc has shown an increasing trend over the past five years. The company's cash conversion cycle was 12.02 days in 2019 and increased to 20.44 days in 2023. This indicates that Cable One Inc took longer to convert its investments in inventory and accounts receivable into cash on hand in the recent year, potentially signaling inefficiencies in its operations.

The increasing trend in the cash conversion cycle suggests that the company may be experiencing challenges in managing its working capital effectively. This could be a result of slower inventory turnover or an increase in the average collection period for accounts receivable, both of which can tie up cash for longer periods.

Overall, Cable One Inc should closely monitor its cash conversion cycle and work towards optimizing its working capital management to improve operational efficiency and maintain healthy liquidity levels in the long run.